Is A Student Loan Income?
Old blog content pulled from the Internet Archive Wayback Machine. Source: http://web.archive.org/web/*/http://www.benclark.com/
For students like me who are curious about whether you need to include student loans in your taxable income… and I’ve been searching around for this for a couple days now… I finally found out the answer. No, you don’t.
Is money from student loans considered taxable income?
A school loan is not taxable at the time you get the money and should not be included as income on your return. A loan is not income because you are expected to repay the amount borrowed (plus interest). If, at a later date, any part of the loan is forgiven, the amount forgiven would be income in that year. Under certain circumstances, student loans forgiven are not income. For more information, refer to Exceptions under Canceled Debts in Publication 525, Taxable and Nontaxable Income.
